July 17, 2009
Why do bank transfers and checks take more time to clear than card transactions?
Sleepless Bookworm asked:
Credit and debit card transactions don’t need time to clear. After swiping your card to make a purchase at a store, the merchant’s register calls to check your credit line or account balance, immediately takes the funds, and immediately pays the store. Why can’t checking/savings accounts work the same way by immediately verifying, debiting, and crediting funds at the time the transfer is made or a check is deposited?
Credit and debit card transactions don’t need time to clear. After swiping your card to make a purchase at a store, the merchant’s register calls to check your credit line or account balance, immediately takes the funds, and immediately pays the store. Why can’t checking/savings accounts work the same way by immediately verifying, debiting, and crediting funds at the time the transfer is made or a check is deposited?
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Comments on Why do bank transfers and checks take more time to clear than card transactions?
In many cases, they DO have that capability.
It is relatively new technology, but the store can scan your check, and it acts just like a debit card. Give it a few years to get the bugs ironed out, but the technology to scan paper checks as if they were a CC or DC is HERE.. NOW….